A wage freeze means real wage losses NewfoundlandandLabradorworkers–includinghealthcareworkers,schoolboardworkers,long-termcareworkers,libraryworkers,transitionhomeworkers,NLHousingandothers–havebeenwaitingyearsforadecentpayincrease.Betterwagesarenecessarytogettheeconomygrowing.Formostworkers,thecollectivebargainingprocessistheonlytoolattheirdisposaltocontroltheirwages,whilethecostoflivingrises.Votingontheircollectiveagreementisameanstoprotecttheirincome.Whenaunionmembervotesonacollectiveagreement,they’renotjustprotectingthemselves–they’reprotectingtheirfamily,theircommunity,andthefutureforgenerationsofworkers.Whenplanningtheirownhouseholdbudget,unionmembersshouldplanforthefouryearsofthecurrentcontractplusthetwoyearsitmaytaketonegotiatethenextcontract.InproposalspresentedtoCUPEbytheProvince’snegotiators,theBallGovernmenthasputforwardafour-yearwagefreezeonpublicsectorworkers,fortheperiodofApril1,2016toMarch31,2020.Thismeansrealwagelossesprojectedas11.1%compounded(astherisingcostoflivingoutpaceswagegains)inthefour-yearperiodofthecontractwearecurrentlynegotiating.Thisattackonpublicsectorwageswilldoseriousdamagetotheeconomy.Continuedonpage2

MEMBER UPDATE

What is a concess ion?

Concessionbargainingisatermusedinnegotiationsinwhichtheemployeraskstheuniontogivebackpreviouslygainedimprovementsinpayandconditions.Theemployermayalsoproposetwo-tiercontractswithlowerwages,benefits,andworkingconditions.Thiswouldseememberswhoworkside-by-sidebeingpaiddifferentratesofpay,withaccesstodifferentbenefits,andevendifferentpensionsuponretirement.Two-tierprovisionsareconsideredaconcession.Acceptingconcessionsisnoguaranteeyou’llevergetbackwhatyou’velost.Ifaunionhasahistoryofconcessionbargaining,theemployeristhatmuchmorelikelytoask.Itisimportanttorememberthateveryitemthatisinourcollectiveagreementissomethingthatbargainingteamsofthepasthavefoughthardtogetandtoprotect.

Continuedfrompage1Suppressingpublicsectorwageswilleventuallydrivedownprivatesectorwages.IftheProvinceisseriousaboutgrowingtheeconomy,theyshouldnotattackwagesorretirementincome.Labourcompensationandhouseholdspendingareresponsibleforwelloverhalfofourcountry’snationalincomeandspendingandformorethan60percentofoureconomicgrowthsince2009.Householdshavemaintainedconsumerspendingbyincreasingtheirdebttorecordlevelsandleveragingequityintheirhomesashousepriceshaveescalated.Thishasbeenaffordablewithlowinterestrates,butwon’tbesustainableasinterestratesriseandrealestatepricesplateauordecline.

Increaseinthecostofliving*-NewfoundlandandLabrador

2016 2017 2018 2019 2020 2021

2.7%

2.6%

2.9%

2.4%

2.4%

2.6%

Iflabourcompensationandconsumerspendingdon’tincreaseatadecentandsustainablepace,thenoureconomywon’tgrowatadecentpaceeither.Thechartbelowcanbeusedtoestimatehowmuchyouwillloseifyourwagesremainthesameduringthisfour-yearperiod,plusthetwoyearsitmaytaketonegotiatethenextcollectiveagreement.

AnnualWages WageLosses

2016 2017 2018 2019

20000 520 540 580 480

30000 780 810 870 720

40000 1040 1080 1160 960

50000 1300 1350 1450 1200

60000 1560 1620 1740 1440

70000 1820 1890 2030 1680

*Source:The2017EconomicReview-FallForecast,NewfoundlandandLabradorDepartmentofFinance

CUPE sets plan to fight concessions and two-tier bargaining TheNationalExecutiveBoardisreaffirmingCUPE’scommitmenttofightingconcessionsandtwo-tiercontractprovisions,anddefendingthefreecollectivebargainingrightsofitsmembers.AtameetinginDecemberlastyear,theNEBapprovedarevisedpolicyoncollectivebargainingthatsetsoutaplantoensureCUPElocalsandmembersarefullypreparedtofightbackagainstattacksduringbargaining.“WorkersdidnotjoinCUPEinordertomovebackwards,tolosewagesorbenefits,orlowertheirworkingconditions.Theyjoinedourunionsotheycouldmoveforward,withabetterworklife,moresecureemployment,andsafeworkingconditions,”saidMarkHancock,nationalpresidentofCUPE.“Wehaveanobligationtoourmemberstoresistconcessions,two-tiercontractprovisions,andprecariouswork.Ifacontractprovisionisnotgoodenoughforourcurrentmembers,itisnotgoodenoughforthenextgenerationofworkerseither.”Therevisedpolicyoutlinesrolesandresponsibilitiesofallelectedleadersandstaffinfightingconcessions,resistingtwo-tiercontractproposalsfromemployers,anddefendingthefreecollectivebargainingrightsofCUPEmembers.ReadthefullNEBPolicyonCollectiveBargainingathttps://cupe.ca/sites/cupe/files/gm/20170628/collective-bargaining-policy.pdf.